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The UK 100 looks set to close the week on the back foot, labouring under GBP strength. This came courtesy of timely speculation of a Brexit delay ahead of Tueday’s meaningful Brexit vote in Parliament.
The index will, nonetheless, book a 1% gain, extending late December’s bounce from 2.5-year lows. This was inspired by after hopes of a US-China trade war resolution, higher oil prices, a more patient Fed, and bargain-hunting following a poor end to 2018.
Bulls need a break above 6925 to confirm a bounce from the 2-week rising channel floor. This would help inspire hopes of regaining 7000 (+85pts), if not challenging October falling highs around 7080 (+165pts). Bears require a break of the channel floor, and a drop below 6900, to raise hopes of a 365 point retrace of that 2-week rally from 6535
Our watch levels: Bullish 6925, Bearish 6900
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Prepared by Michael van Dulken, Head of ResearchComments are closed.